Correlation Between GMO Internet and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both GMO Internet and FEMALE HEALTH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GMO Internet and FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMO Internet and FEMALE HEALTH, you can compare the effects of market volatilities on GMO Internet and FEMALE HEALTH and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GMO Internet with a short position of FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMO Internet and FEMALE HEALTH.
Diversification Opportunities for GMO Internet and FEMALE HEALTH
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GMO and FEMALE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GMO Internet and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH and GMO Internet is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GMO Internet are associated (or correlated) with FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of GMO Internet i.e., GMO Internet and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between GMO Internet and FEMALE HEALTH
Assuming the 90 days horizon GMO Internet is expected to generate 1.21 times more return on investment than FEMALE HEALTH. However, GMO Internet is 1.21 times more volatile than FEMALE HEALTH. It trades about 0.07 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 per unit of risk. If you would invest 258.00 in GMO Internet on October 12, 2024 and sell it today you would earn a total of 1,342 from holding GMO Internet or generate 520.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMO Internet vs. FEMALE HEALTH
Performance |
| Timeline |
| GMO Internet |
| FEMALE HEALTH |
GMO Internet and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMO Internet and FEMALE HEALTH
The main advantage of trading using opposite GMO Internet and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMO Internet position performs unexpectedly, FEMALE HEALTH can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| GMO Internet vs. GALENA MINING LTD | GMO Internet vs. Addtech AB | GMO Internet vs. Agilent Technologies | GMO Internet vs. GRIFFIN MINING LTD |
| FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |